INTERNATIONAL COMMODITY NEWS :
- Gold prices rose by 0.31 per cent on Thursday after Fed minutes showed tension on rate hike views. The latest Federal Open Market Committee meeting showed Kansas City Fed President Esther George had some support of her view another rate hike was appropriate from a couple non-voting members.
- Crude oil futures jumped in the domestic market during noon trade on Thursday as investors cheered a surprise drop in US crude stockpiles from an 86-year high easing fears over a global supply glut.The EIA reported that US crude oil supplies fell by 4.9 million barrels to 529. 9 million barrels in the week ended April 1 2016 whilst production declined by 14000 barrels a day to 9.01 million barrels per day the lowest since November 2014.
- Copper prices traded steady after hitting a one-month low of 2.1305 earlier this week. The Fed’s meeting minutes led to moderate weakness in the USD, which in turn underpinned metals prices. Shanghai Futures Exchange copper was steady at 36,700 yuan ($5,668) a tonne.
ECONOMY NEWS :
- The Reserve Bank of India Governor Raghuram Rajan said on Thursday that the health of the country’s lenders needed to be improved, adding the central bank was taking steps in that direction.Indian banks, which have about $120 billion in bad and troubled loans, are set to reveal more sour debt in the coming weeks after a clean-up ordered by the central bank.
- The Reserve Bank of New Zealand’s deputy governor said on Thursday that the country’s strong labour supply was a factor in keeping monetary policy accommodative.”Stronger than expected labour supply, and greater than expected slack, has been a factor in our assessment that it has been appropriate to keep monetary policy accommodative,” said Geoff Bascand at a speech in Dunedin.
- Growth in world trade will come to 2.8 percent this year, lower than a previous forecast of 3.9 percent, the World Trade Organization forecast on Thursday.It expects trade to rise to 3.6 percent in 2017, breaking through 3.0 percent for the first time in six years. Its forecasts are based on economic growth of 2.4 percent in 2016 and 2.7 percent in 2017.
TRADING STRATEGY :
- BUY GOLD ABOVE 1244 TARGET 1249 1255 SL 1238
- SELL GOLD BELOW 1234 TARGET 1229 1223 SL 1240